The Life Insurance Council, the public forum that mediates between the government, the insurance regulator and policyholders, has recommended an additional tax deduction of Rs 50,000 for life insurance premium.
The present limit of Rs 1.50 lakh under Section 80C, according to the council’s pre-budget representation note, gets exhausted by other alternatives like tuition fees, housing loan repayment and mandatory provident fund deductions. A separate limit for life insurance premium would make the sector more attractive for investments, it said.
